Documentation required when applying for a Franchise loan

Be it a bank or non-bank lender you will need to do the same homework and supply similar information. The Lender will be assessing your ability to run the business as well as your business model. As a general rule you will need to supply:

For a new site

1. A Statement of personal assets and liabilities as well as any other income. The business will need to fund your personal debt as well as the business debt.

2. Projected profit an loss and cash flow forecast. – This is usually produced for the franchisor

3. Business plan – This should include:-

i. Financial Plan

  1. Breakdown or estimate of setup costs
  2. Details of franchise and lease agreement terms
  3. Confirmation of if a bank guarantee id required to for the property lease.

ii. Staffing Plan

  1. Management team, who they are and what their experience is
  2. Typical Rosters and associated costs
  3. Pre-opening training requirements and associated costs

iii. Marketing Plan

  1. Localised / local site marketing. ie how do your prospective customers know that you exist

4. For Companies, six months most recent bank statements for all transaction and loan accounts for each director / partner

5. If available

a. Certificate of incorporation for company

b. Trust deeds

c. Copy of rates notice if property is to be taken as security

Purchase of an existing outlet

1. A statement of personal assets and liabilities as well as any other income. The business will need to fund your personal debt as well as the business debt

2. Existing trade figures – depending on the lender this can be up to three years. If there has been a change in the figures then the reason the numbers have changed

3. Projected Profit and Loss and a monthly cash flow forecast following takover

6. Business plan – This should include:-

i. Financial Plan

  1. Breakdown or estimate of setup costs
  2. Details of franchise and lease agreement terms
  3. Confirmation of if a bank guarantee id required to for the property lease.

ii. Staffing Plan

  1. Management team, who they are and what their experience is
  2. Typical Rosters and associated costs
  3. Pre-opening training requirements and associated costs

iii. Marketing Plan

  1. Localised / local site marketing. ie how do your prospective customers know that you exist

7. For Companies, six months most recent bank statements for all transaction and loan accounts for each director / partner

8. If available

a. Certificate of incorporation for company

b. Trust deeds

4. Copy of rates notice if property is to be taken as security

Re-Finance of existing outlet

1. Statement of personal assets and liabilities of each director /partner.

2. Up to the last 3 years signed profit and loss and balance sheets.

3. previous two years tax returns for individuals and or for companies for each director / partner.

4. Details of franchise and lease agreement terms

a. Confirmation is bank guarantee is needed for premise lease.

5. six months most recent bank statements for all transactions and loan accounts for each director / partner

Documentation required when buying out or into
a Financial Planning business.

1. Your personal history and qualifications. You will need to have a track record of operating in the financial planning industry as well as be a proper authority holder in a dealer group that has been accredited by one of the banks

2. Financial statements from the business you are buying

3. Financial Statements from your business if you have one and the personal tax returns of the director/s

4. A statement of your personal debt position

5. Documentation form the dealer group detailing the renewal income that has been paid to the business you and buying and your current business if appropriate. NB, monthly income from wrap products is acceptable as renewal income.

6. A copy of your business plan which should include, customer management, staffing and business growth.